A slew of Chinese companies are eyeing initial public offerings (IPOs) in Hong Kong, riding on the stock market impetus provided by artificial intelligence (AI) start-up DeepSeek.
AICT, a Beijing-based AI solutions provider, aims to raise about US$200 million from a Hong Kong IPO, according to sources familiar with the matter. AICT, whose products are used in robots, intelligent traffic systems and autonomous driving, was expected to file a listing application in the second quarter, one of the sources said.
Citic Securities and CCB International were the sponsors for the deal, said the people who requested anonymity for discussing a private matter. AICT, which counts smartphone and electric vehicle (EV) maker Xiaomi and venture capital firm Gaorong Capital as strategic investors, would seek a Shanghai listing after Hong Kong, one of the people added.
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More Chinese tech firms could tap Hong Kong's IPO market amid a shift in the market's perception of AI development in China and a supportive regulatory environment, according to industry experts.
Chinese tech firm AICT aims to raise around US$200 million via a Hong Kong IPO, sources say. Photo: Handout alt=Chinese tech firm AICT aims to raise around US$200 million via a Hong Kong IPO, sources say. Photo: Handout>
"With improved sentiment towards tech and AI, mid and large-cap firms in semiconductors, AI and robotics are increasingly exploring IPOs in Hong Kong," said John Lee Chen-kwok, vice-chairman and co-head of Asia coverage at UBS in Hong Kong.
Hangzhou-based DeepSeek's large language models (LLMs) have been rapidly adopted after they became the subject of national pride following their launch last month. DeepSeek-V3 and DeepSeek-R1 offer similar performance to leading proprietary traditional and reasoning LLMs but were trained at a fraction of the cost.
Since DeepSeek's breakthrough, investors have refocused on Chinese names with relatively cheaper valuations than their US peers, Lee said. "Investors are much more engaged in tech names and may bet on the next DeepSeek and the next disrupters."
Goldman Sachs and Morgan Stanley, meanwhile, have lifted their targets for key Chinese stock indices this year, saying faster adoption of AI could spur economic growth and corporate earnings.
"If market sentiment continues to improve alongside the broader stock market and AI re-rating, we can expect more companies to consider listings in Hong Kong," Lee said.
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However, investors would remain selective, "favouring companies with strong fundamentals, sustainable growth models and clear global strategies", said Edward Au, managing partner for the southern region at Deloitte China.
Other tech companies that have filed for Hong Kong listings include Hangzhou-based Manycore Tech, operator of the world's largest spatial design platform. The platform is powered by an infrastructure built on graphics processing units, advanced AI applications and synthetic virtual-data generation, enabling users to convert design ideas into instant visual experiences, according to its filing earlier this month.
Whether investors remain receptive to tech IPOs would also depend on policy directions from China's annual parliamentary meetings known as the "two sessions" in March and government support for private enterprises, Au said.
"Investors are keen to see whether the government will introduce concrete measures to support tech innovation, ease financing pressures and reinforce China's competitive edge in AI and other emerging industries," he said.
Hong Kong's IPO market has improved recently, marked by big deals and strong demand from institutional investors.
China's largest fresh-drinks company Mixue Group has attracted strong cornerstone investors - including British asset manager M&G Investments and HongShan Capital - for its US$444 million IPO.
Contemporary Amperex Technology, or CATL, the world's biggest producer of EV batteries, is eyeing at least US$5 billion via an IPO, potentially the largest share sale in the city since Kuaishou Technology raised US$6.2 billion in January 2021.
The city has been further boosted by mainland regulators encouraging companies to view Hong Kong as the primary overseas listing venue.
"With policies streamlining the filing process and encouraging cross-border capital market connectivity, more companies are expected to explore [Hong Kong] listing opportunities to enhance global visibility, secure funding and accelerate international expansion," Au said.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
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